Correlation Between Dow Jones and Congress Large
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Congress Large at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dow Jones and Congress Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Congress Large Cap, you can compare the effects of market volatilities on Dow Jones and Congress Large and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dow Jones with a short position of Congress Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Congress Large.
Diversification Opportunities for Dow Jones and Congress Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dow and CONGRESS is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Congress Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Congress Large Cap and Dow Jones is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dow Jones Industrial are associated (or correlated) with Congress Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Congress Large Cap has no effect on the direction of Dow Jones i.e., Dow Jones and Congress Large go up and down completely randomly.
Pair Corralation between Dow Jones and Congress Large
Assuming the 90 days trading horizon Dow Jones is expected to generate 1.21 times less return on investment than Congress Large. In addition to that, Dow Jones is 1.01 times more volatile than Congress Large Cap. It trades about 0.18 of its total potential returns per unit of risk. Congress Large Cap is currently generating about 0.22 per unit of volatility. If you would invest 4,727 in Congress Large Cap on June 1, 2025 and sell it today you would earn a total of 444.00 from holding Congress Large Cap or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Congress Large Cap
Performance |
| Timeline |
Dow Jones and Congress Large Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Congress Large Cap
Pair trading matchups for Congress Large
Pair Trading with Dow Jones and Congress Large
The main advantage of trading using opposite Dow Jones and Congress Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Congress Large can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Congress Large will offset losses from the drop in Congress Large's long position.| Dow Jones vs. Sachem Capital Corp | Dow Jones vs. Arbor Realty Trust | Dow Jones vs. Volaris | Dow Jones vs. Perella Weinberg Partners |
| Congress Large vs. Davis Real Estate | Congress Large vs. Rems Real Estate | Congress Large vs. Dunham Real Estate | Congress Large vs. Rreef Property Trust |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |